Strategic Risk Management Report: MacVille Coffee Company Analysis

This report provides a comprehensive analysis of risk management within the context of MacVille Coffee, an Australian coffee supplier. It begins with an introduction to risk management, defining the process of identifying, prioritizing, and assessing risks to minimize potential harm. The report then delves into a case study of MacVille, examining the company's strategic, operational, financial, and compliance risks. It focuses specifically on strategic risks, including strategy execution, forecast, and technology risks. The discussion covers risk treatment approaches, such as avoidance, optimization, and transfer, along with risk control measures like risk awareness programs and hiring skilled employees. The results of these measures are discussed, highlighting the potential for reduced risks, increased workforce effectiveness, and improved revenue. The report concludes with recommendations for MacVille, including self-awareness programs and skilled employee recruitment. Finally, the report emphasizes the importance of strategic goals such as client engagement, expenditure reduction, financial control, and supplier quality monitoring. The report uses relevant references to support its findings.

Running head: RISK MANAGEMENT
Risk Management
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Risks Identification......................................................................................................................2
Risk Treatment.............................................................................................................................3
Risk Control and Measures..........................................................................................................3
Results..........................................................................................................................................4
Recommendations........................................................................................................................4
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

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Introduction
Risk management is the procedure for identifying, prioritizing and assessing the risks that
are followed by relevant resources for the minimization, monitoring and management of the
probable risks (McNeil, Frey and Embrechts 2015). This is mainly done for avoiding the harmful
consequences in any organization.
The following report describes about the case study of an Australian coffee company,
MacVille. The report covers the review and the monitoring of the risks that are common in
MacVille. The report also discusses about the risk treatment, risk controls, the targets, the
measures and the results of those risks (Sadgrove 2016). Relevant recommendations are also
given in the report.
Discussion
MacVille is a coffee supplier company in Australia. The main business of this company
is to import coffee and supply several restaurants and cafes with high quality coffee (Hull 2012).
The entire risk management process for MacVille is given below.
Risks Identification
The risks that are common in the MacVille Company are as follows:
i) Strategic Risks
ii) Operational Risks
iii) Financial Risks
iv) Compliance Risks

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This report focuses on the strategic risks of MacVille. The strategic risks of the company
are as follows:
i) Strategy Execution Risks: This type of risks occurs when there is a high chance the
strategy of a business may fail (Rothaermel 2015). There is a high chance that the strategies
undertaken by the company, MacVille can fail during the execution.
ii) Strategy Forecast Risks: This type of risks occurs when the strategy of a business is
off the mark. The sales forecast that is invalid is an effective example of strategy forecast risk.
iii) Technology Strategy Risks: This type of risks occurs when the technology strategy of
an organization has a high chance to fail (Sadgrove 2016). The technology risks of any company
are extremely common for MacVille.
Risk Treatment
The risk treatment is the procedure for selection and implementation of several measures
for modification of risks. The approaches that are utilized for risk treatment process normally
include avoidance, optimization and transfer of risks. MacVille can manage their risks with the
process of risk treatment (Hull 2012). The monitoring and the review are the two main processes
for the treatment of risks.
Risk Control and Measures
The various strategic risks of MacVille can be controlled by applying several measures.
They are as follows:
i) Risk Awareness: MacVille should conduct risk awareness programs in their business
for reducing the strategic risks.

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ii) Skilled Employees: They should hire skilled employees, right from their top
management (McNeil, Frey and Embrechts 2015). This will in case reduce or rather eradicate the
strategic risks of the business.
Results
The above mentioned risk control and measures will reduce the strategic risks of the
business (Sadgrove 2016). Moreover, it will increase the workforce and the total revenue of the
company.
Recommendations
The recommendations for MacVille are as follows:
i) Self Awareness Programs
ii) Hiring Skilled Employees
Conclusion
Therefore, from the above discussion it can be concluded that, MacVille can have several
strategic risks. For the achievement of the company’s goals and objectives, the strategies
undertaken by the company are the engagement of the clients with great service, reduction of
expenditure and achievement of financial control, and monitoring the quality of the supplier. The
above report describes about the risk management process, which includes the identification of
risks, treatment and control of risks with proper measures, the results from those risks and
significant recommendations for the case study.

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References
Hull, J., 2012. Risk management and financial institutions,+ Web Site (Vol. 733). John Wiley &
Sons.
McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts,
techniques and tools. Princeton university press.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.